Update on smallholder dairy value chain development in India

Iain Wright (ILRI)

Planning Meeting

ILRI Nairobi

28 September 2011

CGIAR Research Program on Livestock and Fish

Smallholder Dairy Value Chains in India

• Population; 1.2 billion• One third of the global target population of CRP3.7 lives in

India• One third of the world’s undernourished children live in India• Government of India defines (rural) poverty as living on less

than Rs 26 per day (57 US cents per day)• If some of the States in India were countries they would be in

the poorest 20 countries in the world (e.g. Bihar, Pop 90M, 6th poorest)

• Half the population is vegetarian so milk is a key source of protein, minerals, vitamins

• India is the largest milk producer in the world• 15 million new mobile phones are sold in India every month

Opportunities

• Rapidly growing demand for milk• 70 million rural HHs involved in milk production• 70% of labour provided by women• SH Dairy has demonstrable ability to reduce poverty• Strong government support (National and State)• Considerable private sector interest and growing

investment• Growing credibility of ILRI in India

Projected milk demand

Milk prices are increasing at 20% per annum

Opportunities

• Rapidly growing demand• 70 million rural HHs involved in milk production• 70% of labour provided by women• SH dairy has demonstrable ability to reduce poverty• Strong government support - NDDP• Considerable private sector interest and growing

investment• Growing credibility of ILRI in India• Technically competent NARS

Challenges• Small herd size – how to support millions of SHs?• Weak and uncoordinated input services and supplies• Low yield – 3.6kg/day; local cattle 1.97kg/day; buffalo 4.4kg/day• Poor genetics - only 12% crossbred• No systematic performance recording in breeding programmes• Feed shortage• Variable animal health services• Very weak extension services• 80% of marketed milk is informally traded• Poor infrastructure• Government wedded to cooperative model• Poor policy environment for private sector input suppliers• Poor coordination among agencies (including research agencies)• Environmental impact of dairy sector

Recent and current projects• Macro level studies of dairy sector in India (+ other countries for PPLPI)• Comprehensive assessment of the dairy sector in Assam• Review of livestock sector services in India (for WB)• Generating evidence to support enhanced traditional dairying in India (new project)• Value chain model for bio-ethanol production from sweet sorghum in rainfed areas through

collective action and partnership• Improving post rainy sorghum varieties to meet the growing grain and fodder demand in

India• Trade offs in use of crop residues (SLP studies)• Cereal system initiative for South Asia (CSISA)• Analysis of fodder markers in Bihar• Sustainable intensification of smallholder maize-livestock farming systems in hill areas of

South Asia• Enhancing dairy-based livelihoods in India and Tanzania through feed innovation and value

chain development approaches (new project)• Economic Impact of FMD and its control in the dairy and meat value chains of selected high

potential regions in India: A pilot study• Enhancing livelihoods through livestock knowledge systems• Review of ICTs in information delivery to livestock farmers

Target States

AssamHumid, milk deficit state, ILRI has good institutional linkages

BiharSemi-humid, lack of previous investment, renewed interest in dairy development, potential link to CRP1.2

Andhra PradeshDryland, (general policy to develop agric in dryland areas), lot of private sector interest, potential link to CRP1.1

Impact Pathway

• Work with R&D partners to identify research question priorities along VC

• Pilot VC interventions with partners• Scale out through development partners and

other stakeholders• Continual engagement with stakeholders

Resource Mobilization/Pipeline projects

• CSISA Phase 2 (BMGF/USAID)• Enhancing the traditional milk value chain in

Assam (World Bank/ Gov of Assam)• Building animal health economics in India

(ICAR)• Developing mobile telephony services to the

dairy sector in India (mFARMER; GSMA)• Livestock value chains in Bihar and Orissa

(BMGF?)

Engagement as CRP 3.7• Limited engagement as CRP3.7• ICAR involved in stakeholder meetings in design

phase• Initial meeting with GoI Dept of Animal

Husbandry, Dairy and Fisheries• Informed Dairy Development Department, and

Dept of Veterinary and Animal Husbandry in Assam

• Preliminary discussions with private dairy in Andhra Pradesh

Key PartnersNational Assam Bihar Andhra PradeshICAR Assam Agric Univ ICAR Eastern Region Anim Husb Dept*

Dept of Anim Husb and Dairying

Dairy Development Dept

Bihar Vet College* Dodla Dairy*

NDDB* Animal Husb Dept Anim Husb Dept*

BAIF World Bank AACP Bihar Milk Federation*

BASIX FARMS (USAID)*

* New partner Development partners providing uptake pathways

Potential new partners will emerge in each State as the Sectorial and VC analysisare undertaken

Potential outcomes2012 2013 2014

VC stakeholders engaged in discussions on priority interventions based on initial VC assessments

Development partners focusing intervention activities based on VC assessments

Decision makers aware of implications of trade offs in use of crop residues and recognize role of crop residues in feeding systems

More effective , efficient and safe traditional milk marketing systems

Development partners promoting new crop-residue based feeding systems

Increased capacity in economic assessment of disease impacts and cost effectiveness analysis

New improved food-feed crops grown

New ICT based systems for knowledge on milk production and marketing implemented.

New training programmes on animal feeding being delivered

Staff

• Iain Wright (20%)• Nils Teufel (100%)• Arindam Samaddar (100%)• Nutritionist (100%)• Paulo Ficarelli (70%)• Ram Deka (17%)• Michael Blummel (?)• Amare Hailslasse (?)